BlueCompany is preparing its master budget for 2017. Relevant data pertaining to its sales, production, and direct materials budgets are as follows.

Sales. Sales for the year are expected to total 2,000,000 units. Quarterly sales are 20%, 25%, 23%, and 32%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $47 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 10% higher than the budgeted sales for the first quarter of 2017.

Production. Management desires to maintain the ending finished goods inventories at 25% of the next quarters budgeted sales volume.

Direct materials. Each unit requires 2 pounds of raw materials at a cost of $11 per pound. Management desires to maintain raw materials inventories at 10% of the next quarters production requirements. Assume the production requirements for first quarter of 2018 are 498,000 pounds.

BLUE COMPANY Direct Materials Budget Quarter e Textbook and Media Sm/core3562/signments/3730242 Chapter 13 Homework Synced to Gradebook Tue, Mar 3, 2020, 8:06:37 AM (America/Phoenix -07:00) Next > 0.43/1 Question 2 View Policies Show Attempt History Current Attempt in Progress BlueCompany is preparing its master budget for 2017. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales Sales for the year are expected to total 2,000,000 units Quarterly sales are 20%, 25%, 23%, and 32% respectively. The sales price is expected to be $10 per unit for the first three quarters and $47 per unit beginning in the fourth quarter Sales in the first quarter of 2018 are expected to be 10% higher than the budgeted sales for the first quarter of 2017, Production Management desires to maintain the ending finished goods Inventories at 25% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $11 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2018 are 498,000 pounds. Your answer is correct. Prepare the sales budget by quarters for 2017. BLUE COMPANY Sales Budget For the Year Endin December 31, 2017 courses/35627/assignments/3730242?module Jtem d 11930153 Production Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $11 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2018 are 498,000 pounds. Your answer is correct. Prepare the sales budget by quarters for 2017 BLUE COMPANY Sales Budget For the Year Ending December 31, 2017 Quarter 500000 160000 400000 Expected unit sales Unit selling price 20000000 18400000 16000000 Total sales e Textbook and Media Your answer is partially correct